Business will wholesale product from next January.
Covered Insurance has partnered with Tokio Marine (TMK) and 3XD to launch FlyCovered, an on-demand aviation product for manned aircraft.
According to the broker the coverage provides fully comprehensive physical damage protection for the aircraft and the pilot’s liability in accordance with EU laws.
A spokesperson for Covered told Insurance Age that they are aiming to start wholesaling the product, which it claimed is the first of its kind, in January 2019.
Covered built the online FlyCovered platform, while policies are offered via coverholder 3XD. TMK will supply all the capacity.
Ian Grant, head of product development at Covered, said: “Customers are increasingly demanding more flexible, cost-effective insurance and pilot enthusiasts are now able to benefit from on-demand insurance through the Covered on-demand platform.
“Regulations require pilots to have public liability cover when flying, this cover can be added to the policy even on the same day you intend to fly. Many pilots only get to fly 15 to 20 times a year and the traditional insurance policies do not offer the flexibility required for this market.
“With FlyCovered, pilots have access to the benefits of a fully comprehensive policy, and can save money by only paying for the flight days they need.”
Available are three polices developed to fit the needs of different aircraft owners.
Using the FlyCovered website customers can manage policies online, purchase flight days and cancel flight days instantly 24/7.
The three policies are listed as: ground cover +, on-demand and frequent flyer.
TMK’s head of general aviation, Jay Wigmore, said: “Working with Covered Insurance and 3XD to bring FlyCovered to market has been a fantastic opportunity for manned aviation insurance to step into the InsurTech world.
“We are looking forward to developing this partnership to push the boundaries of traditional aviation insurance through cutting edge innovation.”
In 2016, Covered launched an on demand insurance product designed for learner drivers.
It described it as a hybrid of ‘on demand’ and ‘pay as you go’ insurance arrangements that enabled learner drivers to buy insurance that they only use when they need.
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